Question
For each of the following transactions of the Bland Corp., indicate the effect on November's Net Income by entering I for increase, D for
For each of the following transactions of the Bland Corp., indicate the effect on November's Net Income by entering I for increase, D for decrease and N for no change. Evaluate each transaction independently of the others. a. Bland receives a bill for utilities used during the month of October. The company pays this bill on November 20. b. Bland receives a bill for website hosting for the period November 1 to November 30. Bland plans to pay the bill on its due date, December 15. c. Bland provides a service to a customer on November 15; the invoice to the customer allows cash payment by December 12. d. Bland purchases inventory for cash during the month of November. e. On Nov. 18, Bland uses cash to pay off a $8,000 of loan principal. f. Bland sells 100 units of inventory on November 2. The selling price of the inventory was $15 per unit, and the cost per unit to acquire the inventory on October 27 was $9. I g. Bland receives $4,000 cash on November 15 from a customer. In exchange, the company agrees to provide service to the customer in the months of December and January.
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